SABLE EXPLORATION AND MINING LIMITED - Financial results for the year ended 29 February 2024 short-form announcement

Financial results for the year ended 29 February 2024 
– short-form announcement

SABLE EXPLORATION AND MINING LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 2001/006539/06)
JSE share code: SXM ISIN: ZAE000303319
("SEAM" or "the company" or "the group")


FINANCIAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2024
– SHORT-FORM ANNOUNCEMENT

Financial results

                                  29 Feb        %           28 Feb        28 Feb
                                    2024    change            2023          2023
                                                         Restated *   Previously
                                                                        reported

Total equity (R'000)               5 555         >100      (35 465)     (32 258)
Total comprehensive loss          11 193          49.7        7 478        6 237
for the year (R'000)
Basic loss per share (cents)      (51.45)    (70.0)        (171.88)     (143.34)
Headline loss per share           (51.45)    (70.0)        (171.88)     (143.34)
(cents)
Number of shares in issue      56 564 742                4 351 134     4 351 134
at year end

Note:

* During the course of the audit the company identified a Reportable Irregularity in accordance with
the definition provided by the Auditing Profession Act No. 26 of 2005. This Reportable Irregularity
pertains to the Pay-As-You-Earn (PAYE) and Unemployment Insurance Fund (UIF) not being
deducted from the remuneration of the directors, paid to a company which is considered to be a
personal service provider. The Reportable Irregularity has been rectified in the comparative figures
as well as the current year under review. The correction has been applied retrospectively to the
affected prior periods in accordance with the relevant accounting standards.


Audit Report

The company's external auditor, CM & Associates Inc., have issued a qualified opinion including a
material uncertainty relating to a going concern and an emphasis of matter on the underlying annual
financial statements, as detailed below. The audit report also includes key audit matters. The annual
financial statements for the year ended 29 February 2024 including the audit report, are included in
the Annual Integrated Report which are available on the company's website www.sablemetals.co.za
and may also be requested by e-mail from the CEO at james@sablemetals.co.za or the Company
Secretary at claire@capgov.co.za or www.sablemetals.co.za.

An extract of the audit opinion is as follows:

  Qualified Opinion

 We have audited the group annual financial statements of Sable Exploration and Mining Ltd (the
 company) set out on pages 41 to 60, which comprise the statement of financial position as at 29
 February 2024, statement of profit or loss and other comprehensive income, statement of
 changes in equity and statement of cash flows for the year then ended, and notes to the group
 annual financial statements, including material accounting policy information.
 In our opinion, except for the possible effect of the matter described in the Basis for Qualified
 Opinion section of our report, the group annual financial statements present fairly, in all material
 respects, the financial position of Sable Exploration and Mining Ltd as at 29 February 2024, and
 its financial performance and cash flows for the year then ended in accordance with International
 Financial Reporting Standards and the requirements of the Companies Act of South Africa.

 Basis for Qualified Opinion

 We were engaged to audit the group annual financial statements of Sable Exploration and Mining
 Ltd set out on 41 - 60, which comprise the statement of financial position as at 29 February 2024,
 statement of profit or loss and other comprehensive income, statement of changes in equity and
 statement of cash flows for the year then ended, and notes to the group annual financial
 statements, including material accounting policy information.
 The audit was conducted based on information provided by the management of Sable Exploration
 and Mining Ltd, as we were unable to obtain sufficient appropriate audit evidence due to the
 limitations arising from the predecessor auditors'. The possible effect on the group financial
 statements of undetected misstatements, if any, due to the inability to obtain sufficient appropriate
 audit evidence could be material but not pervasive.

 Additionally, as disclosed in note 17 to the group financial statements, the group has restated its
 prior period financial statements to correct the disclosure of Pay-As-You-Earn (PAYE) and
 Unemployment Insurance Fund (UIF). The prior period financial statements were misstated due to
 the PAYE and Unemployment Insurance Fund (UIF) not being deducted from the remuneration of
 the directors paid to a company which is considered to be a personal service provider.


 Material Uncertainty Related to Going Concern

 We draw attention to note 19 to the group annual financial statements, which indicates that the
 company incurred a net loss of R46 918 987 during the year ended 29 February 2024. The note
 states that these events or conditions, along with other matters as set forth in note 19 to the group
 annual financial statements, indicate that a material uncertainty exists that may cast significant
 doubt on the company's ability to continue as a going concern. Our opinion is not modified in
 respect of this matter.

 Emphasis of Matter

 We draw attention to note 17 and note 21 to the group annual financial statements which
 indicates that a reportable irregularity was reported to the Independent Regulatory Board for
 Auditors on Pay-As-You-Earn and Unemployment Insurance Fund not deducted from the
 remuneration of the directors. The irregularity has been rectified in the comparative figures as
 well as the current year under review based on the opinions obtained by management of Sable
 Exploration and Mining Limited, obtained from legal professionals. Our opinion is not modified in
 respect of this matter.


Short-Form Statement

This short-form announcement is the responsibility of the directors. It is only a summary of the
information contained in the annual financial statements and does not contain full or complete details.

Any investment decision should be based on the audited annual financial statements for the year
ended 29 February 2024 which are included in the Annual Integrated Report, accessible from 1 July
2024, via the JSE link on:
https://senspdf.jse.co.za/documents/2024/jse/isse/sxme/FY2024.pdf
Copies of the audited annual financial statements for the year ended 29 February 2024 which are
included in the Annual Integrated Report may also be requested by contacting the CEO at
james@sablemetals.co.za or Ms Claire Middlemiss by email at claire@capgov.co.za and are
available for inspection at the Company's registered office at no charge, weekdays during office
hours or www.sablemetals.co.za.


1 July 2024
Johannesburg

Sponsor
Exchange Sponsors

Date: 01-07-2024 07:30:00
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